ESPEC Quality is more than a word





Q. Where can I find information about the history of ESPEC?
A. Please see "ESPEC's History"
ESPEC's History
Q. What is the derivation of the name?
A. Based on the results of a survey of people in more than a dozen countries, a combination of alphabetic characters were selected to create an image of internationality, intelligence and progressiveness.
Corporate Philosophy (Identity)
Q. What is your company code?
A. 6859
Q. On which exchanges is ESPEC listed?
A. ESPEC is listed on the Prime Market of the Tokyo Stock Exchange.


Q. Who is your transfer agent?
A. Please contact the Stock Transfer division of Mizuno Trust Banking Co., Ltd.

General management

Q. Please describe your management plan.
A. Please refer to the "Management Plan".
Management Plan
Q. What is your policy on returning benefits to shareholders?
A. The Company decides that the basic policy on dividends is that the return of profits to shareholders is an important management priority, and constantly raising lasting enterprise value is the key element in ensuring improved shareholder returns, taking into consideration continuity and the dividend payout ratio. Specifically, while retaining a dividend return with a target consolidated dividend payout ratio of around 30%, in cases where the balance of cash and cash equivalents exceeds the planned necessary funds for uses such as dividends, corporate taxes, operating capital, capital investment, and strategic investment, the Company will also add around one third of the excess to the dividend. Moreover, the Company will maintain a dividend of ¥20 as a stable dividend, regardless of the level of profit, but may review this in cases where the Company records consolidated net losses for two consecutive fiscal years.
In addition, the Company will flexibly examine treasury share acquisitions, bearing in mind the necessary level of internal reserves and considering changes in the management environment and its financial position.
Dividend / Shareholder Returns

Accounts and financial information

Q. When do you release your results and hold general meetings?
A. Please refer to the "IR calendar".
IR Calendar
Q. Where can I find historical performance data?
A. Please see the "Financial Highlights".
Financial Highlights
Q. What are your performance forecasts for the current year?
A. Please see the "Financial forecast".
Financial forecast
Q. There appears to be an imbalance between accounts receivable and accounts payable.
A. Our sales tend to be concentrated at the end of each business year because of the way in which our customers manage their budgets. That is the main reason for the increase in accounts receivable toward the end of each business year.
Q. Do orders and sales tend to be concentrated in either the first or second half of the year, or in particular quarters?
A. There is a concentration in the second half. On a quarterly basis, there tends to be a weighting toward the second and fourth quarters, especially the fourth quarter.
Q. To what extent is your performance affected by rises or falls in the value of the yen?
A. The weak yen has a positive impact. However, the effect is minimal, since we trade mainly in yen.
Q. How are your sales spread among the various markets?
A. The market for electronic devices and equipment for almost 37%, the automotive market for about 19%, the semiconductor market accounts for about 13% and the research institute for almost 7%. Almost 23% of sales are derived from the markets for other items.

General business activities

Q. What are your shares of the markets in which you are involved?
A. In the area of environmental testing equipment, we have a domestic market share of over 60% (a global market over 30%). *Market shares are ESPEC estimates
Q. What barriers are there to market entry by new competitors?
A. ESPEC CORP. was the first company in Japan to develop environmental test chambers, led other companies in establishing a nationwide network of agencies and acquired the leading market share. In addition to high-quality, highly functional environmental test chambers made with advanced technological capabilities and that are highly customizable, the Company also provides total services including laboratory testing services and facility rentals. ESPEC also has a substantial global network including manufacturing bases in the U.S., China and South Korea. We have built a framework that enables customers to use us anywhere in the world with a sense of security, and we believe it would be difficult for other companies to newly enter the market.

Equipment Business

Q. What kind of business is the Equipment Business?
A. Manufacturing and sales of environmental test chamber, Energy devices equipment and Semiconductor equipment.
Q. What percentages of your environmental test chamber is used for R&D, production and other applications?
A. Around 70% of our products are used in R&D and about 30% for inspection.
Q. What is the service life of your environmental testing equipment.
A. This varies according to conditions of use. Generally 8-10 years.
Q. What type of equipment do you have available in relation to batteries?
A. As well as providing environmental testers, charge-discharge evaluation equipment and safty evaluation system that are used for R&D, aging, inspection and evaluation.
Q. What percentages of burn-in systems are used in R&D and production?
A. Almost production.
Q. What percentages of your instrumentation systems are used for R&D, production and other applications?
A. Around 70% of our instrumentation systems are used in R&D. The remainder is used mainly in reliability and quality management.

Service Business

Q. What kind of business is the Service Business?
A. Providing after service, engineering, laboratory testing services and facility rental.

Other Business

Q. What kind of business is the Other Business?
A. Environmental conservation (reforestation: tree planting, waterfront biotope restoration and urban greening) and plant production systems (plant factory and equipment for growing plants).